How Should I Manage Multiple Health Insurance Policies After Retirement?

As individuals approach retirement, one aspect that requires careful consideration is managing multiple health insurance policies. With various options available, such as private plans and add-on coverage, navigating the complex landscape of healthcare coverage can be daunting, as can be seen via the scenarios given below.

Scenario 1:

I’m 65 and live by myself. My son and his family reside abroad. I have two policies for health insurance, each costing about Rs. 3 lakhs. I purchased one of the policies from a reputed insurer      and still need to file a claim under that policy. A lawsuit has yet to be made for the second one     , which was taken in 2005. Annual premium increases are occurring. 2023 marks the renewal of the policy, and I do not intend to extend it. How should I administer the rules?

Ans: Your health insurance policy’s premium rises in direct proportion to your age. The likelihood of getting sick increases with age, so the tips are raised to cover you adequately. The Rs. 3 lakh in insured value might not be sufficient if you have a family floater policy. Instead of two health insurance policies, you should have one covering Rs. 10 lakh.

A top-up policy is available and is less expensive than a regular plan. You can switch to a different insurer if your current health insurance policy does not offer enough protection. Covering your son’s family under the local health insurance plan is optional if they live abroad.

Scenario 2:

I am 32. I have a term plan worth Rs. 1 crore. I want to purchase a critical illness and accidental disability plan for between Rs. 50 lakh and Rs. 1 crore. Insurers have requested that I buy a Rs 2 crore policy based on my income. Is more insurance coverage necessary? Do I also need health insurance coverage for critical illness and accidental disability? They don’t come under medical insurance, do they?

Ans: Your term insurance coverage should ideally be 15 to 10 times your yearly income. Avoid purchasing a separate term insurance plan if your existing policy covers the need. However, you should consider purchasing an additional term plan if your coverage differs from 15-20 times your yearly income.

You could choose individual policies to protect yourself against critical illness and unintentional disability. Always be sure to have a basic health insurance plan. A fixed benefit on critical illness and accidental disability is typically not included in health insurance plans. Only hospitalisation is covered.

Effectively managing multiple health insurance for senior citizens requires a thorough evaluation, careful consideration of individual needs, and proactive planning. Individuals can make informed decisions to ensure comprehensive coverage and optimal healthcare access by reviewing policy benefits, costs, networks, and limitations. Seeking guidance from insurance advisors and healthcare professionals can provide valuable insights and personalised recommendations. Ultimately, the goal is to balance simplifying administrative tasks, reducing costs, and maintaining the desired level of coverage and flexibility to meet healthcare needs in retirement.*

*Standard T&C Apply.      Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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